FibroGen Inc (FGEN) Reports 155% YoY Increase in Q3 2023 Net Revenue
FibroGen Inc (NASDAQ:FGEN) reported a 155% year-over-year increase in third quarter net revenue, reaching $40.1 million.
Roxadustat volume in China grew by 37%, contributing to the company's strong performance.
The company's cost reduction plan has been successfully implemented, leading to an expected reduction of total annualized expenses of $120 million.
FibroGen Inc (NASDAQ:FGEN) expects its cash runway to extend into 2026.
On November 6, 2023, FibroGen Inc (NASDAQ:FGEN) released its third quarter 2023 financial results, reporting a significant increase in net revenue and robust growth in roxadustat volume in China. The company's successful execution of its cost reduction plan has also contributed to its strong financial performance.
Financial Highlights
FibroGen Inc (NASDAQ:FGEN) reported a net revenue of $40.1 million for the third quarter of 2023, marking a 155% increase year over year. The net loss for the quarter was $63.6 million, or $0.65 net loss per basic and diluted share, compared to a net loss of $91.7 million, or $0.98 net loss per basic and diluted share one year ago. The company's cash, cash equivalents, investments, and accounts receivable as of September 30, 2023, amounted to $283.0 million.
China Performance and Upcoming Milestones
In China, the company achieved a net product revenue of $29.4 million from the sale of roxadustat, a 69% increase compared to the same period in 2022. Total roxadustat net sales in China by FibroGen and the distribution entity jointly owned by FibroGen and AstraZeneca reached $77.1 million, a 31% increase year over year. The company expects approval decision of chemotherapy-induced anemia (CIA) in China in mid-2024.
Looking ahead, FibroGen Inc (NASDAQ:FGEN) anticipates topline data from two pivotal pamrevlumab pancreatic cancer trials in the first half of 2024. The company also plans to start a Phase 2 metastatic castrate-resistant prostate cancer trial and file two immuno-oncology INDs within the next 12 months.
Commentary
Today, we reported another quarter of strong roxadustat volume growth in China, achieving the highest ever value share, at 42%, in the anemia of CKD category," said Thane Wettig, Chief Executive Officer, FibroGen. "The continued strength of our China business, sooner than expected realization of our corporate cost reduction efforts and our strong balance sheet provide us a cash runway into 2026."
Financial Tables
According to the condensed consolidated balance sheets, as of September 30, 2023, FibroGen Inc (NASDAQ:FGEN) had total assets of $460.426 million, compared to $610.087 million as of December 31, 2022. The total liabilities, redeemable non-controlling interests, and deficit amounted to $460.426 million as of September 30, 2023.
The condensed consolidated statements of operations showed a total revenue of $40.134 million for the third quarter of 2023, compared to $15.735 million for the same period in 2022. The total operating costs and expenses for the third quarter of 2023 were $103.616 million, compared to $109.392 million in the third quarter of 2022.
Explore the complete 8-K earnings release (here) from FibroGen Inc for further details.
This article first appeared on GuruFocus.
